Tether announced on June 18, 2026, that it will wind down its Alloy by Tether platform and discontinue the aUSDT stablecoin, a derivative token over-collateralized by Tether Gold (XAUT). The decision follows an internal review of user activity and market demand, prompting a strategic shift toward products with stronger demand and deeper liquidity.
The phase-out begins immediately with a halt on new positions and aUSDT minting. Existing users have a three-month window—until September 17, 2026—to return their aUSDT and reclaim the underlying XAUT collateral. After the deadline, remaining aUSDT will no longer be redeemable through the platform. The aUSDT supply currently stands at roughly $1.2 million, backed by 14.73 kilograms of gold worth about $2.2 million.
Tether emphasized that XAUT remains a core product. The token, representing direct ownership of physical gold, has a market capitalization of around $3 billion with over 22,000 kilograms of gold in reserve. In contrast, Alloy, launched in June 2024, allowed users to lock XAUT in Ethereum smart contracts to mint aUSDT, gaining dollar-like liquidity without selling gold exposure.
The move is part of a broader consolidation. Tether previously ended support for its euro-pegged EURT and Chinese yuan-pegged CNHT stablecoins and has been channeling resources into areas like tokenization (via its Hadron platform), artificial intelligence, Bitcoin mining, and robotics. The company also disclosed plans to launch a Georgian lari stablecoin and signed a memorandum of understanding with Dubai’s DMCC to explore tokenized asset projects.
